Mid-Atlantic Church Law Attorney
Serving Virginia, Maryland, District of Columbia, North Carolina and West Virginia
The Mid-Atlantic church law attorneys of Simms Showers LLP have extensive experience providing counsel to churches, ministries, religious schools, denominational bodies, and related nonprofit entities. The firm assists churches located across Virginia, Maryland, the District of Columbia, North Carolina, and West Virginia, and also advises churches and faith-based organizations across the nation. Our practice combines decades of constitutional, regulatory, transactional, and litigation experience with a deep sensitivity to the theological, governance, and liturgical distinctives of each client we serve, whether that client is a small independent congregation, a large multi-site church, a denominational mission board, or an international ministry.
Our church law counsel covers incorporation and corporate governance, tax-exempt compliance and IRS disputes, land use and property matters, legal risk management, litigation and alternative dispute resolution, child sexual abuse prevention and defense, international ministry compliance, and church employment law. We routinely advise on federal religious liberty protections including the First Amendment, the Religious Freedom Restoration Act (RFRA), the Religious Land Use and Institutionalized Persons Act (RLUIPA), the ministerial exception recognized in Hosanna-Tabor v. EEOC and Our Lady of Guadalupe v. Morrissey-Berru, and the religious employer exemptions under Title VII of the Civil Rights Act.
Incorporation and Church Corporate Governance
Although churches are allowed to incorporate in almost every state, the Commonwealth of Virginia only recently joined the national trend in 2006, when it changed its State Constitution to allow churches to incorporate to comport with a successful challenge in Falwell v. Commonwealth of VA in 2002, in which our firm helped prevail for Dr. Falwell and Thomas Road Baptist Church. Our firm has incorporated numerous churches of all sizes and denominational affiliations throughout Virginia, Maryland, the District of Columbia, North Carolina, and West Virginia. We have the experience and resources to help tailor the incorporation process to each church’s needs in a timely and cost-efficient manner, and our firm is sensitive to the governance, theological, and liturgical preference needs of each church.
Beyond the initial filing, sound corporate governance requires thoughtfully drafted bylaws and a church constitution, clear membership and discipline procedures, properly documented board and member meetings, and conflict-of-interest and compensation policies that satisfy IRS intermediate sanctions rules. We help churches choose between member-governed and trustee or elder-governed structures, draft and amend governing documents, conduct legal audits of existing governance practices, and resolve internal disputes over polity, property, or leadership. If you are interested in getting more information about the church incorporation process, please contact our firm or fill out an introductory Incorporation Questionnaire to get started.
Tax Exempt Issues, IRS Regulations, and Tax Court Disputes
Even the most conscientious church can unwittingly run afoul of the myriad restrictions the IRS places on tax-exempt organizations. The constantly changing political and legal landscape continues to pose threats to many of the IRS protections and exemptions that churches have taken for granted in the past. Our firm has extensive experience navigating these requirements and keeping abreast of current changes, and we have represented numerous churches in front of the IRS and various tax courts.
We advise on maintaining 501(c)(3) status, the Johnson Amendment and the limits on political campaign activity, lobbying limits under Section 501(h), unrelated business income tax (UBIT) exposure, private inurement and excess benefit transactions, donor substantiation and acknowledgment requirements, designated giving and benevolence fund administration, and compliance with the Church Audit Procedures Act (Section 7611), which establishes special protections for churches facing IRS inquiry. If the IRS has challenged your tax-exempt status, or if you simply need advice on how to achieve your ministry goals without inviting IRS scrutiny, our firm can provide the needed counsel and risk management to protect your organization and eliminate or mitigate harm.
Land Use, Zoning, and Property Development and Acquisition
Property development and acquisition can be a large part of a church’s growth and ministry. It can also be a very complicated decision, often fraught with unexpected costs and hassles. Increasing regulation further complicates the process, and zoning roadblocks established by local governments, especially in crowded areas like Northern Virginia and the D.C. metro region, can stall or derail ministry plans. On top of the general issues incumbent in any building project, tax-exempt entities have to consider specific issues related to their tax-exempt status and their religious liberty protections.
The Religious Land Use and Institutionalized Persons Act (RLUIPA) is a powerful federal statute that protects religious assemblies and institutions from discriminatory or unduly burdensome zoning and landmarking laws. Our firm has prevailed in significant RLUIPA matters, and we routinely use the statute as both a shield against hostile zoning treatment and a sword to secure permits and approvals churches are entitled to receive. We help clients negotiate property purchase agreements and navigate the tricky waters of due diligence, including environmental, title, and zoning issues. We assist throughout the construction process by reviewing and drafting agreements with architects, engineers, and general contractors. For clients renting properties for ministry use, we draft and negotiate leases, secure and maintain church-specific property tax exemptions across each Mid-Atlantic state, and structure rental arrangements that best support ministry activities.
Legal Risk Management
The old adage that the best defense is a good offense is aptly applied in the area of risk management. Many litigation matters and IRS disputes could have been prevented, or at least mitigated, with effective policies, wise counsel, and issue awareness. Churches are often surprised by the liabilities they incur, and what they do not know hurts them the most. Our firm’s litigation experience helps us identify weak spots in your risk management and work with you to create a strategy and make decisions that will shield your church for years to come from avoidable litigation and disputes.
We provide risk management services and counsel in a variety of areas including corporate structure and asset protection, tax-exempt fundraising policies and strategy, employment and volunteer policies, hiring and firing decisions, employment non-discrimination including emerging issues like sexual orientation and gender identity following Bostock v. Clayton County, religious exemptions and accommodations, child sexual abuse prevention policies and training, mandated reporter compliance under state law, data privacy and member record retention, social media and counseling liability, drone and facility use policies, and property and religious tax exemptions.
Litigation and Alternative Dispute Resolution (ADR)
Despite the fact that a good offense is the best defense, it is essential for every church to have legal counsel experienced and ready to litigate zealously on their behalf. Our firm has successfully defended and litigated on behalf of churches in both state and federal courts across the Mid-Atlantic on numerous risk management and related matters, as well as helped conclude many successful alternative dispute resolution proceedings. Below is a sampling of the types of matters we have encountered in court, which are representative and illustrative and do not guarantee identical or similar results.
- Long Lane v. Cornerstone Chapel et al. (2012), where we prevailed at the Virginia Supreme Court on behalf of the church on a land use case of first impression in Virginia that allowed the church to build on their land despite the zoning and land use attacks.
- Riverdale Baptist Church v. Anne Arundel County et al. (2011), a RLUIPA religious land use and discrimination case in Maryland federal court in which we won the right for the church school and plant to develop its property after a four-week trial that resulted in a Consent Judgment and large monetary award to the church including attorney fees and costs.
- Leesburg Pike Community Church v. Harbor View Contractors et al. (2009-2010), a series of arbitrations and collections that resulted in successful litigation against construction contractors who did not fulfill the building contracts.
Child Sexual Abuse Prevention and Defense
In today’s culture, addressing this sad issue openly and effectively is a must for churches. Although child sexual victimization has been on the rise in recent years, the Christian community has in many instances remained ignorant, uninformed, and unprepared, often through no fault of their own. Our firm has extensive experience helping churches change their perspective on these issues and become equipped with well-defined policies, open discussions, and effective training. We also help assess and prepare for the assimilation of sex offenders into church and religious nonprofits, where thousands of Christian converts are coming out of prison for sex offenses and need a Christian community but pose a great potential threat.
We help churches comply with mandated reporter statutes, which vary meaningfully across Virginia, Maryland, D.C., North Carolina, and West Virginia, and we train staff and volunteers on screening, supervision, two-adult rules, transportation policies, overnight event protocols, and proper response to disclosures. Unfortunately, some churches are not able to take these preventative steps before they find themselves facing the spiritual, emotional, and legal nightmare of responding to an incident or an allegation of child abuse. Our firm has worked with these churches to help them understand their liabilities and address both the victim and the perpetrator in a God-honoring, prudent manner. We are well-equipped to help churches respond to these allegations either through defense litigation or settlement, and we also assist victims in getting the help needed to heal and move forward with their lives.
International Law and Global Ministry Compliance
In an increasingly globalized market, and especially in the interest of spreading the Gospel around the world, many churches are seeking ways to expand their ministry outside the United States through short-term mission trips, partnerships with overseas non-governmental organizations (NGOs), and financial support of local believers ministering in their own countries. These ministries implicate a variety of regulations and restrictions, including IRS codes governing foreign grants and discretion-and-control requirements, banking restrictions under the Bank Secrecy Act and FinCEN rules, sanctions enforced by the Office of Foreign Assets Control (OFAC), and the Foreign Corrupt Practices Act when interacting with foreign officials. Our firm has worked with churches to help them achieve ministry goals overseas and comply with OFAC regulations, IRS rules on donations and fundraising for a foreign NGO, expenditure responsibility documentation, and business activity in foreign countries. We also advise on visas and immigration matters for visiting missionaries and clergy, including the R-1 religious worker visa and EB-4 special immigrant religious worker classification.
Church Employment
One of the biggest ways that churches accomplish their ministry and other goals is through the work of employees and volunteers. As a result, legal advice in this area is crucial, as employment practices and decisions can significantly and sometimes unexpectedly impact the organization’s tax-exempt status, corporate liability, and financial stability. Church insurers consistently report that the majority of lawsuits and claims arise in the employment area, and expert legal advice is needed to avoid serious problems. While churches are entitled to many special exemptions under employment law, including the ministerial exception, the Title VII religious employer exemption, and various state-level protections, many of these exemptions are nuanced and tricky to claim and maintain.
Our firm helps churches navigate these complicated waters in a variety of matters, including religious hiring and firing decisions, ministerial classification determinations, employee discipline, internal investigations of abuse or harassment allegations, ADA accommodations where not exempted, FLSA overtime and minimum wage compliance, classification of interns and volunteers, severance package negotiation in sensitive termination situations, unemployment compensation proceedings, ministerial and clergy housing allowance setup and maintenance under Section 107, church 403(b) non-ERISA pension plans, settlement agreements, and responses to EEOC charges and state human rights commission complaints.
Why Mid-Atlantic Churches Choose Simms Showers LLP
Our firm combines a sincere respect for the mission of the church with rigorous legal craftsmanship. We have argued and won precedent-setting religious liberty cases, including the Falwell challenge that opened church incorporation in Virginia. We are admitted across the Mid-Atlantic and routinely handle matters that cross state lines, which spares ministries the cost of retaining separate counsel in each jurisdiction. We work efficiently with church boards, executive pastors, and finance teams, and we communicate in plain language about legal risk, cost, and strategy. We also recognize that confidentiality, pastoral sensitivity, and theological alignment are not optional in this practice area, and we structure every engagement accordingly.
Frequently Asked Questions About Mid-Atlantic Church Law
Does my church need to incorporate?
Incorporation is not legally required, but it offers significant benefits including limited liability for officers, directors, and members, clearer ownership of property, easier banking and contracting, and a defined governance structure. Unincorporated associations can leave individual leaders personally exposed to liability. Most churches in Virginia, Maryland, D.C., North Carolina, and West Virginia choose to incorporate as nonprofit religious corporations under state law.
What is the difference between incorporation and 501(c)(3) status?
Incorporation is a state-level act that creates the church as a legal entity. 501(c)(3) is a federal tax classification that exempts the church from federal income tax and allows donors to deduct contributions. Churches that meet the IRS definition are automatically considered 501(c)(3) without applying, though many choose to file Form 1023 for written recognition that simplifies dealings with donors, grantors, and state agencies.
What is RLUIPA and how does it protect my church?
The Religious Land Use and Institutionalized Persons Act is a federal statute that prohibits local governments from imposing land use regulations that impose a substantial burden on religious exercise, treat religious assemblies on less than equal terms with nonreligious assemblies, discriminate against religious assemblies, or totally exclude or unreasonably limit religious assemblies within a jurisdiction. RLUIPA is one of the most effective tools available when a church faces hostile zoning decisions, and remedies can include injunctive relief, damages, and attorney fees.
What is the ministerial exception?
The ministerial exception is a constitutional doctrine, most recently affirmed in Our Lady of Guadalupe v. Morrissey-Berru, that bars employment discrimination claims by ministers against their religious employers. It protects the church’s right to choose who carries out its religious mission. The exception is fact-specific, and whether a particular employee qualifies as a minister depends on their duties, training, title, and role in the church’s spiritual life.
Can my church lose its tax-exempt status?
Yes. Common risks include political campaign intervention in violation of the Johnson Amendment, excessive lobbying, private inurement to insiders, excess benefit transactions, and operating substantially for non-exempt purposes such as unrelated commercial activity. Most loss of exemption is preventable with proper policies and counsel.
What is the Johnson Amendment?
The Johnson Amendment is the portion of Section 501(c)(3) that prohibits tax-exempt organizations, including churches, from participating in or intervening in any political campaign on behalf of or in opposition to any candidate for public office. Educational and issue-advocacy activity is permitted within limits, but endorsements of candidates are not. The line between permitted and prohibited activity can be subtle, and we routinely advise pastors and church leaders on how to stay safely within the law.
What should we do if we receive a child abuse allegation?
Take it seriously, document the report, comply with state mandated reporter laws by contacting the appropriate authorities, separate the accused from any contact with children pending investigation, preserve evidence, notify your insurance carrier, and contact experienced legal counsel immediately. Mishandling the initial response often causes more legal and pastoral damage than the underlying allegation itself.
Can our church hire and fire based on religious beliefs?
Yes, within important limits. Churches enjoy broad authority to make employment decisions for ministers under the ministerial exception, and Title VII contains a religious employer exemption that permits hiring based on religion for all positions. State and local laws can vary, and certain protected classes such as race and national origin cannot be the basis of hiring decisions. Carefully drafted statements of faith, lifestyle expectations, and job descriptions strengthen the church’s position.
Are church properties exempt from property tax across the Mid-Atlantic?
Generally yes, but exemption rules and procedures vary by state and even by locality. Virginia, Maryland, D.C., North Carolina, and West Virginia each have their own statutes governing religious property exemption, and exemptions can be lost through partial commercial use, leasing to non-exempt tenants, or simple paperwork failures. We help churches obtain exemptions, defend them on appeal, and structure mixed-use properties to preserve as much exempt status as possible.
Do we need bylaws and a church constitution?
Yes. Well-drafted bylaws and a constitution clarify governance, define membership rights and discipline procedures, set officer and board duties, and establish decision-making processes. Courts generally defer to a church’s internal governance documents when resolving disputes, so vague or outdated documents can create unnecessary risk.
When should our church first consult a church law attorney?
Before you need one. The most cost-effective use of legal counsel is during the formation, governance, and policy stages, well before any dispute arises. An annual or semi-annual legal review can catch issues early, and a relationship with experienced counsel means you have someone ready to respond when an unexpected matter arises.
Contact Our Mid-Atlantic Church Law Attorneys
Whether your church needs help with incorporation, IRS compliance, a zoning fight, an employment dispute, an abuse allegation, an international ministry question, or any other legal matter, the Mid-Atlantic church law attorneys of Simms Showers LLP are ready to help. We serve churches and ministries throughout Virginia, Maryland, the District of Columbia, North Carolina, and West Virginia, as well as faith-based organizations across the country. Contact us today to schedule a consultation.
